QUIZ 1 - SPAF123

Duane Reade Sdn. Bhd. is carrying inventory at its current market value of RM150,000. Inventory had an original cost of RM100,000.

• Historical Cost Concept

• Materiality Concept

• Consistency Concept

• Prudence Concept

ACCOUNTING is a system or process of ________, summarizing business and financial transactions, analysing, verifying and reporting that money related activities to permit individuals and business to make informed__________.

A large company purchases a RM10 wastebasket and recorded it as an asset for the company.

• Historical Cost Concept

• Materiality Concept

• Accrual Concept

• Business Entity Concept

Rania family treated the company assets as their own.

• Consistency Concept

• Prudence Concept

• Going - concern Concept

• Business Entity Concept

Recognized RM200,000 in revenue in periods earlier than should have been recognized.

• Cost Concept

• Periodicity Concept

• Accrual Concept

• Matching Concept

Mars Berhad keep on changing their accounting treatment for the depreciation of its non-current assets.

• Matching Concept

• Consistency Concept

• Double entry Concept

• Prudence Concept

Owner of the DEF Enterprise bought a car for the personal use of his wife. He has recorded this in his business, including the petrol paid for the car.

• Going - concern Concept

• Prudence Concept

• Business Entity Concept

• Accrual Concept

A company continues in business even though its founder died

• Double entry Concept

• Consistency Concept

• Business Entity Concept

• Going - concern Concept

Payment such as postage, stationery and cleaning expenses should not be disclosed separately. They should be grouped together as sundry expenses.

• Double entry Concept

• Materiality Concept

• Business Entity Concept

• Separate Legal Entity

FAD Enterprise had been sued and it was expected that the business will need to pay compensation of RM10,000.

• Accrual Concept

• Double entry Concept

• Prudence Concept

• Materiality Concept